Move to Telehealth Strains Rural Hospitals

They have seen operating margins narrow but have smaller financial cushions than urban hospitals

By By Dan Hounsell


In the last year, the COVID-19 pandemic has pushed the transition among healthcare facilities nationwide to virtual care delivery and technology-based operations. The move to telehealth has meant that facilities of all sizes and in all areas have had to invest in the equipment and technology to make it happen. For larger, urban health systems, this transition has been relatively straightforward.

For rural hospitals, though, the move has been especially expensive, according to MedCity News. They have seen their operating margins narrow but have smaller financial cushions than urban hospitals.

As a result, many have decided that their 2021 IT spending must focus on areas that will give them the most bang for their buck. These include equipment upgrades, buying new revenue cycle management technologies, and of course, enhancing telehealth.

Against a challenging economic backdrop, rural hospitals have to make IT decisions very strategically. A major challenge for these providers last year is equipment upkeep and the upgrades required to maintain their EHR presence.



March 25, 2021


Topic Area: Information Technology


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